HR Outsourcing is the process of allowing one or more of the HR functions / activities to be conducted by an external provider. When an organisation decides to outsource a HR function or activity, they are allowing a third party to make decisions and deliver on set outcomes associated with that particular activity, as determined by the company. There are many factors an organisation should consider prior to outsourcing, and these will vary depending on the organisation’s business, goals, culture, size, location and so forth.
Depending on the needs of the organisation, it may choose to outsource anywhere between 1% -100% of its functions.
Typical areas of HR that are commonly outsourced include but are not limited to:
- Payroll services
- HR Auditing
- Employee / Workplace Relations
- HR Information Systems
- Bench marking activities (climate surveys, etc)
- Psychometric Testing
- Employee Assistant Services
For more information on HR outsourcing, please view the following: